A Tampa-based startup has closed on more than $7 million in its first funding, with the help of some local investors.
Tampa's XGen, which uses artificial intelligence to help eCommerce companies, has raised $7.5 million in its seed round.
The majority of the investors were angel investors. However, local firm Florida Funders also participated in the round. The angel investor network/equity fund hybrid also did not disclose the amount it invested in the company.
“ECommerce is growing rapidly and XGen is aligned with that macro trend; they’re the element missing in the eCommerce tech stack,” Tom Wallace, managing partner at Florida Funders, said in a statement. “XGen's ... personalization approach to make an individual’s specific needs and preferences a priority is what both consumers and marketers not only want, but need.”
The company stated it grew 400 percent in the last quarter. Its AI technology adapts to users in real-time, tailoring product recommendations based on the user's behavior. The new funding will be used to further invest in the company's product development and expand its sales and customer support teams.
“We’re excited to partner with Florida Funders and we’re proud to be part of the tech community in the Sunshine State," Frank Faricy, founder of XGen, said. "There’s no better place than Florida to grow XGen in this booming startup scene."
XGen is the fifth company in Florida Funders second fund portfolio, which also recently invested in Arkansas-based Ox Fulfillment Solutions and New York-based SimpleBet. Saxon Baum, VP of investor relations at Florida Funders, said the second fund will be a rough mix of 60/40 Florida-based companies and companies beyond the state. The fund currently has more than $10 million, with an ultimate goal of $75 million. To see the list of investments from Florida Funders first fund, click here.
"We want to invest in Florida but we also want the best deals possible," Baum said. "The other thing is, we have the mindset that if investors [in its investor network] are investing in us and making money, and then re-investing, it's another way to get capital into the state of Florida and tech companies."
